Keys to Success for First-Time Homebuyers
Buying your first home is an exciting decision and a major milestone that has the power to change your life for the better. As a first-time homebuyer, it’s a vision you can bring to life, but, as the National Association of Realtors (NAR) shares, you’ll have to overcome some factors that have made it more […]
The Impact of Changing Mortgage Rates [INFOGRAPHIC]
Some Highlights
Powerful Job Market Fuels Homebuyer Demand
The spring housing market has been surprisingly active this year. Even with affordability challenges and a limited number of homes for sale, buyer demand is strong, and getting stronger. One way we know there are interested buyers right now is because showing traffic is up. Data from the latest ShowingTime Showing Index, which is a […]
What You Need To Know About Home Price News
The National Association of Realtors (NAR) will release its latest Existing Home Sales Report tomorrow. The information it contains on home prices may cause some confusion and could even generate some troubling headlines. This all stems from the fact that NAR will report the median sales price, while other home price indices report repeat sales prices. […]
The Impact of Inflation on Mortgage Rates
If you’re reading headlines about inflation or mortgage rates, you may see something about the recent decision from the Federal Reserve (the Fed). But what does it mean for you, the housing market, and your plans to buy a home? Here’s what you need to know. Inflation and the Housing Market While the Fed’s working hard […]
Buyer Activity Is Up Despite Higher Mortgage Rates
If you’re a homeowner thinking about making a move, you may wonder if it’s still a good time to sell your house. Here’s the good news. Even with higher mortgage rates, buyer traffic is actually picking up speed. Data from the latest ShowingTime Showing Index, which is a measure of buyers actively touring homes, helps paint […]
A Recession Doesn’t Equal a Housing Crisis
Experts are predicting a potential recession on the horizon, which may lead some to worry about buying or selling a house. However, historical data shows that a recession doesn’t always mean falling home prices. In fact, home prices have appreciated in four of the last six recessions dating back to 1980. The 2008 housing crisis was an outlier due to a surplus of homes for sale at the same time as distressed properties flooded the market. In contrast, today’s housing market has a low supply of homes for sale, so while there may be slight price declines in some areas, a crash is unlikely. A recession typically means falling mortgage rates, which creates more opportunity for homebuyers. Overall, experts predict any recession will be mild and short, and there’s no need to fear what it means for the housing market.
Beyond Mortgage Rates: The 3 Surprising Factors Shaping Home Affordability Today
The current state of home affordability is not just based on mortgage rates, but also on home prices and wages. Although mortgage rates have climbed since their pandemic-era record lows, they have remained relatively stable for the past eight months, hovering between 6% and 7%. Home prices, on the other hand, have varied by market, with some areas seeing slight declines while others continue to climb. However, rising wages are currently the most positive factor in affordability, as higher income reduces the percentage of one’s paycheck needed to cover monthly housing costs. To get a better understanding of how these factors work together in your local market, it’s best to consult with a trusted real estate agent.
What Are the Experts Saying About the Spring Housing Market?
The spring housing market is currently experiencing more competition among buyers, and a growth in housing supply during this time of year. Industry experts predict that while home prices may not experience big changes in the short term, the market is showing signs of improvement with a pick-up in activity despite low inventory. While new listings are increasing, they are not growing as quickly as usual, which may result in more competition among buyers. For those thinking about selling their house, the low inventory makes this a good time to do so. Expert advice should be sought by those in a position to buy.
The Power of Pre-Approval
If you’re buying a home this spring, today’s housing market can feel like a challenge. With so few homes on the market right now, plus higher mortgage rates, it’s essential to have a firm grasp on your homebuying budget. You’ll also need a sense of determination to find the right house and act quickly when […]